Q&As

Where X terminates its contract with Y for Y’s material breach, is X still required to follow the contractual dispute resolution processes set out in the contract? (The contract is silent as to whether material breach negates the dispute resolution clause). Is there any case law on this?

read titleRead full title
Published on LexisPSL on 05/03/2018

The following Dispute Resolution Q&A provides comprehensive and up to date legal information covering:

  • Where X terminates its contract with Y for Y’s material breach, is X still required to follow the contractual dispute resolution processes set out in the contract? (The contract is silent as to whether material breach negates the dispute resolution clause). Is there any case law on this?

Many contracts will include an express provision giving one or both parties the right to terminate where the other party is in material breach. An election to terminate a contract for breach (or repudiation) discharges the parties from the obligation to perform (or to be ready and willing to perform) their respective contractual duties (Heyman v Darwins Ltd at 367). Lord Porter explained in Heyman: ‘the fuller expression that the injured party is thereby absolved from future performance of his obligations under the contract

Popular documents